Algeria, Russia: Europe's Natural Gas Dilemma

A deal between Russia's Gazprom and Algeria's Sonatrach will increase Europe's dependence on natural gas supplies from a limited number of countries, Italian Energy Minister Pier Luigi Bersani said Aug. 9. Gazprom and Sonatrach signed a memorandum of understanding Aug. 4 on closer cooperation. Out of the many possible projects Russia and Algeria could be looking at — liquefied natural gas, pipeline construction, purchasing assets in a third country or collaborating on natural gas prices — the last is the most likely, leaving much of Europe at the mercy of two of its three largest natural gas suppliers.